Why FG won’t use imported materials in housing projects – Fashola

The Minister of Power, Works and Housing, Babatunde Fashola, has revealed that the decision of the Federal Government not to use imported materials in its housing schemes is in fulfillment of its desire to diversifying and growing the economy through the patronage of local businesses.

Fashola, who was represented at the Real Estate Investment Trust, REIT, Conference, held at the Exchange House in Lagos recently by a former finance commissioner in Lagos State, Ayo Gbeleyi, disclosed that the decision was part of the government’s efforts to help small businesses in the housing industry grow.

In his words, “we have as such resolved not to use imported materials in our housing schemes, where there are local alternatives.

“In this way, we will be achieving one major objective of the President Muhammadu Buhari Administration’s vision and strategic goal of diversifying our economy,” he said.

“By standardizing fittings such as doors, windows, roofing sheets, tiles and other components, it allows us to use these standards to stimulate local mass production of fittings and finishing to meet the demands of mass housing,” the minister said.

Speaking further, the minister said, “For example, the smallest of houses will have at least a main door, a kitchen door, a room door and a bathroom door making a total of 4 (Four) doors.

“In order to build 250,000 units of that type of house, this market will need to produce 1,000,000 (One Million) doors.

“This does not include pipes, taps and sockets for electrical appliances. I leave you to imagine what this can do for our economy if we produce all these items locally.

“Our surveys indicate that electrical fittings such as sockets and door locks are still largely imported and we will use our demand capacity to stimulate local manufacturing or assembly, in order to keep the jobs in these areas at home.”

The minister disclosed that the government has resolved that the next step toward industrial production is to reduce the time it takes to build a block.

“Our recent experience shows that a block of 12 flats usually takes 12 – 18 months at the quickest,” he said, adding that, “We are looking at designing moulds that reduce this time to 6 (Six) months or less.”
The REIT conference was organised by the Nigerian Stock Exchange, NSE, in collaboration with other stakeholders in the housing sector and the capital market.